BILL ANALYSIS �
SB 216
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Date of Hearing: June 26, 2013
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Rob Bonta, Chair
SB 216 (Beall) - As Amended: April 29, 2013
SENATE VOTE : 38-0
SUBJECT : Public employment: salary ranges.
SUMMARY : Requires the California Department of Human Resources
(CalHR) to address salary compaction for managerial and
supervisorial employees and provide data to the Legislature when
insufficient revenue is available to implement a salary
determination to increase managerial and supervisorial salaries
by 10% over the salaries of their subordinate rank and file
employees. Specifically, this bill :
1)Makes findings and declarations regarding the roll of CalHR in
setting salaries for excluded employees and managing the
non-merit aspects of the state's personnel system, and
declares that CalHR is unable or reluctant to recommend
appropriate salary increases for excluded employees when there
is no legislative appropriation to pay for the increases, and
in such cases defers to the Department of Finance even though
the Department of Finance has no direct role in establishing
or recommending salaries for excluded employees.
2)Requires CalHR to address salary compaction and parity
concerns consistent with the principle that it is appropriate
to provide managerial/supervisory employees a salary at least
10% higher than the salary of rank and file employees they
supervise.
3)Requires CalHR to provide the Legislature with data on salary
compaction as specified whenever the department determines
there is insufficient revenue to fund a salary determination
to increase managerial/supervisorial salaries pursuant to the
state's compaction differential policy.
EXISTING LAW :
1)Effective July 1, 2012, merged the Department of Personnel
Administration and the administrative functions of the State
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Personnel Board to form CalHR, which among other duties serves
as the representative for the Governor in all state collective
bargaining activities.
2)Requires that CalHR and each of the state's 21 collective
bargaining units meet and confer and enter into contracts over
wages and working conditions for represented employees.
3)Requires that CalHR set salaries for excluded and exempt
employees, and allows excluded employee representatives to
meet and confer with CalHR, but does not otherwise make the
state employer or excluded employees subject to collective
bargaining requirements.
FISCAL EFFECT : According to the Senate Appropriations
Committee, "CalHR estimates costs of approximately $200,000 for
2 Personnel Years to compile and analyze the data (General).
Additionally, there will be unknown costs associated with salary
increases that may result from addressing compaction. A 1%
increase in the salaries of supervisors and managers would cost
approximately $35- $40 million.
COMMENTS : Salary compaction and parity are significant issues
facing the state in compensating management employees. Salary
compaction occurs when the salaries of subordinate employees
approach, and in some cases exceed, the salary of their
supervisors. State policy is that supervisory and managerial
employees receive salaries 10% above the pay of the classes they
supervise.
The CalHR is responsible for setting the salaries of exempt and
excluded state employees. There is no statutory requirement to
extend a pay package that was bargained for represented
employees to related excluded employees.
According to the author, "CalHR sets salaries for
non-represented employees. However, due to state budget
pressures in the preceding decade, supervisory salaries have not
kept pace in many cases with salaries for rank-and-file
employees who benefit from overtime and collectively bargained
pay increases, for which supervisors are not eligible. Salary
compaction occurs when non-represented employees make the same
or less than those they supervise.
"This discrepancy creates problems by dis-incentivizing good
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managerial candidates from promoting. A management level
position can result in added stress and the loss of overtime and
collective bargaining privileges. In some cases supervisors and
managers demote back to rank-and-file positions after a period
of time as a supervisor or manager because the minor pay
difference does not sufficiently compensate for the added stress
and workload."
The author concludes, "A strong state workforce is critical to
ensuring effective and necessary services to California's
citizens and visitors. This bill attempts to address this very
real problem in a meaningful way."
The Association of California Supervisors states that "after
years of cuts to state employees, supervisors, managers, and
confidential employees now often make less than the employees
who work for them. In fact, according to a recent survey, 43%
of state supervisors and managers earn the same or less than the
employees who report to them."
According to the California Correctional Supervisor
Organization, "Compaction issues, left unaddressed, create a
disincentive for qualified line officers to seek promotion.
This in turn, weakens the structure of the entire organization."
REGISTERED SUPPORT / OPPOSITION :
Support
Association of California State Supervisors (Sponsor)
California Association of Professional Scientists (Co-sponsor)
Professional Engineers in California Government (Co-sponsor)
California Statewide law Enforcement Association
Opposition
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None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957